A firm following a niche strategy in a declining industry reduces its scope of operations and focuses on narrow segments of the declining industry.

Question

Quizplus · Accepted Answer

This statement is true. A firm following a niche strategy in a declining industry would focus on narrow segments of the industry and reduce its scope of operations to remain competitive. By serving a specific market segment with unique needs, the firm can differentiate itself from competitors and maintain profitability despite overall industry decline.

A Firm Following a Niche Strategy in a Declining Industry